spx holding well and building onto yesterday's 2.94% gains.
earlier ppi and retail sales numbers were both better than expected so bulls will find an economy that is slowing but not enough to go into a recession while the inflation picture is under control, at least for october.
looking at the recent correction from 1576.09 (10/11/07) to 1438.53 (11/12), the 38.2% retracement or what the street say, the fibo 38.2 is 1491.08.
magically, spx traded to 1492.14 already earlier this morning and that is an important point which the market must take out soon. hopefully today!
if that is not possible and the spx fades into yesterday's gain, the support is the 23.6% of the correction or 1470.99. if that does not hold, it's likely the jump yesterday was an ideal point to sell into.....
overnight in hong kong, the hang seng broke it's 38.2% retracement point (28737.531) of its correction from 31958.41 to 26746.63 with a 29166.01 close, but shanghai cs300 did not join into the fun..
as the chiu index has a lot of chinese adrs, further strength in the hang seng is needed for tonight.
Hi Paul,
ReplyDeleteI posted an article I found on your portfolio construction site-if you have a moment to check it out:
http://siliconinvestor.advfn.com/readmsg.aspx?msgid=24065820
The headline is "China Curbs Bank Loans to Cool Investment Fever" and in a nutshell, speculates that this could put a damper on Chinese stocks. Was wondering if that would impact BIDU and other US listed Chinese stocks??
BIDU didn't snap back yesterday along with the market and other momentum stocks...I wonder if this was why??
Take care- hope you're having a nice weekend...(:!
Kate